Larsen and Toubro (L&T) Limited, India’s largest engineering and construction conglomerate, announced on Tuesday, July 8 that it has clinched a Rs.10.47-billion contract from the Indian Railways (IR) to construct a wheel manufacturing plant in Bihar. The L&T has mentioned in a regulatory statement that this plant will be built at Saran in Bihar’s Chhapra district in two years and that it will make 100,000 wheels every year. It has also been underscored that this project will have no foreign collaboration.

Under this Rs.10.47-billion contract of the Indian Railways, the Larsen and Toubro Limited will bear responsibilities of engineering, procurement and building of the complete plant. It will also take care of electrical installation along with designing, setting up and commissioning of machinery. 

The engineering and construction major L&T had also introduced a separate rail business unit previous year to explore other options such as dedicated freight corridor, railway station modernization, rail-based urban mass transportation and so on. At the moment, it is also examining the various proposed public-private participation (PPP) railway projects.